The foreign Ministry has promised to reduce dependence on the dollar as settlement currency

In response to new US sanctions Russia will try to reduce dependence on the us payment systems and of the dollar as a settlement currency. In early August, Donald trump signed the bill on new sanctions

Photo: Yegor Aleev / TASS

Deputy foreign Minister Sergei Ryabkov in an interview to the magazine “international life” has listed a number of measures that Russia intends to take in response to new US sanctions.

“Of course, we will strengthen the work related to import substitution, reducing some dependence on the U.S. payment system, the dollar as the settlement currency and so forth,” Ryabkov said, adding that it was “an absolute necessity” (quoted by “RIA Novosti”).

However, the Deputy Minister expressed the hope that “confrontation will not come to” Washington and Moscow will work toward the normalization of relations or try to find a way, “how to minimize the damage from the incident”.

Speaking about the restoration of relations with the United States, Ryabkov said that it is “really about the action that will have long-term consequences.” He recalled that for the lifting of sanctions would require the consent of both houses of Congress. “To get rid of this it will be very difficult and time will leave much, it is a fact”, — he stressed.

While US foreign policy under the administration trump the Deputy head of the Russian foreign Ministry has described as “the continuation of the worst of the heritage of Obama.” “It turns out that we have continuity in foreign policy for the us, Russia, rather negative,” he added.

In conclusion, Ryabkov noted that relations between Russia and the United States “did not pass the test of strength,” and the majority in Congress “imposed their will on the administration.”

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Program Director of the club “Valdai” Yaroslav Lissovolik told RBC that Russia in response to U.S. sanctions may increase the level of use of national currencies, including the increased use of the ruble.

“There is an option just greater use of other currencies, including Chinese yuan. There are also opportunities and the use of national payment systems. In addition to the [system] “Peace” exist in the payment system other BRICS countries, which can be increasingly used,” he said.

Statement by Sergei Ryabkov is “more emotionally propagandisti nature,” said RBC”s head of operations in the monetary market of Bank “Metallinvest” Sergey Romanchuk. According to him, in fact, significantly change the currency structure in the calculations and in the reserves of Russia will not succeed.

The Russian side for quite a long time working on the “internal clearing dollars” to make payments between the participants in the dollar-denominated payments without the involvement of correspondent banks and SWIFT. “This work is interesting not from the point of view of sanctions, and cheaper technologies. Although a one-time waiver of the same SWIFT would be unsustainable and expensive”, — said Romanchuk.

National payment system in Russia already exists and is “to some extent” works, but for the global payment market comprises a small share and will continue to occupy it even in the foreseeable future, according to Professor of Finance of the Russian economic school Oleg Shibanov. “To abandon completely American payment systems will be hard enough” — he said RBC. He also believes that the transition from the dollar to other currency may result in additional transaction costs. “For example, our trade with China may switch to virtually any and yuan at any time. The problem is that our oil and gas companies will continue to do with these currencies. Since quite a large volume of payments on the debt, and the equipment has to be done in dollars, they will have to convert the yuan or virtually any back into dollars,” he said.

On 2 August President of the United States Donald trump signed the law on new sanctions against Russia, North Korea and Iran. Document before it was approved by both houses of Congress.

official channels

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